Silver prices crash 9% today: Is the rally over?
What's the story
Silver prices have witnessed a sharp decline today, the last trading day of 2025. The fall comes as investors book profits after a record rally this year. The Multi Commodity Exchange (MCX) silver rate plunged by over ₹18,000 per kg or 7.5% to ₹2,32,228/kg. Meanwhile, the COMEX silver price fell by 9% from its previous close to almost $71 per ounce after hitting an intraday low of $70.315.
Trends
Silver and gold prices: A year of exceptional performance
Despite the recent fall, silver is on track for its best annual performance ever, having gained nearly 150% in 2025. Gold has also seen a significant rise of 65%. The gains can be attributed to persistent geopolitical risks, a softer US interest rate environment, sustained central bank purchases, and rising exchange-traded fund inflows.
Market shifts
Silver's strategic importance and demand dynamics
Silver has crossed several key milestones this year, owing to its growing strategic importance in the US, supply constraints, low inventories, and strong demand from industrial users and investors. Minutes from the Federal Reserve's December policy meeting showed that most officials felt additional rate cuts could be warranted if the inflation continues to ease. Geopolitical uncertainty over a Russia-Ukraine peace deal, tensions in the Middle East, and US-Venezuela relations fueled safe-haven demand for gold and silver throughout the year.
Expert opinions
Market experts weigh in on price rally
The recent sell-off has led investors to question if the white metal's price rally is over. However, market experts believe it may be a shift rather than an end, with demand dynamics changing across industrial users and long-term investors amid short-term volatility. Analyst Sugandha Sachdeva noted that "the white metal rally has not vanished; it has migrated from paper traders who rarely take delivery to industrial users who must secure supply."
Market analysis
Analysts monitor key support levels for silver
From a technical perspective, the analysts are closely watching key support levels on global exchanges. Analyst Anuj Gupta said silver's near-term direction depends on holding critical price thresholds. "The COMEX silver price has a crucial support level at $70 per ounce. If this support is breached, the precious white metal may try to test $68 and $65 levels in the near term," Gupta added.